City set to raise wastewater rates

Tyler Juranovich, Kokomo Tribune, Ind.
·4 min read

Sep. 14—Wastewater rates within the city are set to increase beginning next year for the second time in six years.

The Kokomo City Council voted 8-0 Monday to approve on first reading an ordinance that will increase the per 100 gallon rate and the minimum monthly rate the city charges residents, businesses, schools, industry and government buildings beginning Jan. 1, 2023. Councilwoman Kara Kitts-McKibben was absent.

Current wastewater rates are based on meter size and water use, both of which can be found on one's Indiana American Water bill. The city also charges a flat monthly stormwater usage fee based on meter size — $3.18 for most — and that remains unchanged.

The new wastewater rates are:

Class 1

* Residential Flow Processing Rate (per 100 gallons): $0.858 ($0.64 currently)

* Commercial Flow Processing Rate (per 100 gallons): $0.858 ($0.64 currently)

Class 2

* Industrial Flow Processing Rate (per 100 gallons): $0.536 ($.40 currently)

Class 3

* Government Flow Processing Rate (per 100 gallons): $0.955 ($0.712 currently)

Class 4

* K -12 Public Schools Flow Processing Rate (per 100 gallons): $0.803 ($0.5990 currently)

Minimum Monthly Fees for Metered Facilities

Meter Size

* 5/8" — $17.16 ($12.80 currently)

* 3/4" — $17.16 ($12.80 currently)

* 1" — $38.91 ($29.02 currently)

* 1-112"- $77.84 ($58.06 currently)

* 2" — $137.88 ($102.84 currently)

* 4" — $137.88 ($102.84 currently)

* 6" $137.88 ($102.84 currently)

Minimum Monthly Fees for Unmetered Facilities

* Wells: Residential and Commercial — $51.72 ($38.58 currently)

* Other — $72.93 ($54.40 currently)

The new rates will increase the majority of residents' wastewater bills by nearly $5 a month at the very least as the majority of residential water meters are either 5/8" or 3/4 " and will cost at least $17.16 a month.

A resident using 4,000 gallons of water a month will pay $34.32 a month for wastewater under the new rate, according to a handout provided by the city. That's compared to $25.62 a month now, for an increase of nearly $9 a month, or a 34% increase.

The increase will move the city ahead of cities such as Carmel ($26.48), Gary ($34) and Lafayette ($29.56) in monthly cost for use of 4,000 gallons a month, but it will remain lower than others, such as Fort Wayne ($36.47), Columbus ($36.97) and Anderson ($39.20), according to the handout.

A public hearing for the proposed rate increases is scheduled for 6 p.m. Sept. 26 in the first floor City Council chambers at City Hall, 100 S. Union St., Kokomo.

The proposed rate increases come shortly after the city announced it was going to cost up to $20.1 million to clean up soil remediation of the toxic chemical pollution found below ground near the city's wastewater treatment plant, 1501 W. Markland Ave.

Last year, the city unexpectedly found arsenic, lead, mercury and polychlorinated biphenyls, or PCBs, at levels that exceeded the limits set by the Indiana Department of Environmental Management on the northeast end of the facility's property near Wildcat Creek during work on a major wastewater expansion project

The major expansion project involves building a new wastewater line from the Highland Park area to the plant as part of the city's long-term control plan to eliminate its combined sewer overflows, which is a federally-mandated program.

The contamination is likely pollution left decades ago by Continental Steel Corp., which had its main plant operations near the wastewater treatment plant on the other side of Wildcat Creek.

The issuance of revenue bonds to cover the remediation cost was approved on final reading by the City Council on Monday. The bonds will be paid with revenue from city wastewater revenues for no longer than 2048, with their interest rates are not to exceed 5%.

The two — soil remediation and wastewater rate increase — are linked. A rate study completed by LWG CPAs and Advisors LLP found that the city's current wastewater revenues would not be sufficient to cover its increase in costs caused by the remediation project, necessitating the rate increase.

City Controller Wes Reed said last month that the city considered modifying the expansion project by rerouting where the new pipes would go so they would avoid the contamination, but that would have ended up being more expensive than the soil remediation. He added that the city is still working on the possibility of receiving grant money or insurance money to help offset the soil remediation costs.

If approved, the wastewater increase would be the second one since 2017. At that time, the city raised rates to help cover the cost of a $23 million CSO mitigation project.

Tyler Juranovich can be reached at 765-454-8577, by email at tyler.juranovich@kokomotribune.com or on Twitter at @tylerjuranovich.